The National Assembly Committee on Health has cleared the Sh104.8 billion Safaricom-led health digitalisation project saying queries on its cost, Safaricom’s role, and tendering process have been addressed.

The committee had queried the procurement of the Integrated Information Technology System For Universal Healthcare, demanding a formal letter of consent from the Attorney General.

According to the committee members, the said letter is a legal requirement under section 134(2) of the Public Procurement and Asset Disposal Act for such a significant tendering process.

But the Ministry of Health availed the AG’s letter hence complying with all legal requirements meant to protect public money assuring there is value for money in any government transaction.

The MPs had also questioned Safaricom’s role as the Consortium’s lead partner but learnt the ministry picked the telcos as a strategic partner giving it a request for proposal for the tender.

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However, Safaricom submitted its bid as a consortium with Apiero Ltd and Konvergenz Network Solutions Ltd, with Safaricom as the lead bidder to ensure all partners observed the contract terms.

Ministry of Health told the Dr Robert Pukose-led committee it selected Safaricom due to its technological capacity including its extensive call and 5G network coverage across Kenya.

The Ministry clarified the Sh104.8 billion was not only for Social Health Insurance but also for developing a Health Information Management System, a Health Information Exchange platform, provision of telemedicine and track and trace for pharmaceutical products, the SHA Insurance Management Platform, an Enterprise Resource Planning (ERP) system, National Logistics and Supply Chain Management software, a learning platform, a data lake and analytics system, as well as the necessary digital health infrastructure to support these systems.

The ministry confirmed that the Specially Permitted Procurement had been approved as part of the broader framework for health sector projects included in its FY 2023/2024 procurement plan.

The health ministry further clarified that it was Kaplan & Stratton Advocates that conducted the due diligence on the process, not Dentons Hamilton Harrison & Mathews as widely reported.

The ministry led by Cabinet Secretary Dr Deborah Barasa argued that this ensured there was no conflict of interest given Safaricom Chairman Adil Khawaja is a partner at the latter law firm.

The ministry and Social Health Authority pledged to accord 4,065 hospitals facing power and internet access hitches devices with power banks and a digital system that can function offline.

The ministry further committed to collaborate with the Ministry of Energy to upgrade infrastructure and provide reliable electricity to ensure the digital health system’s success.